Rambus (NASDAQ:RMBS) Hits New 1-Year High After Analyst Upgrade

Key Points

• Rambus Inc. reached a new 52-week high of $78.56 after Arete upgraded the stock to a buy rating, with a price target set at $91.00.
• Despite the upgrade, other analysts have issued mixed ratings, with Wall Street Zen downgrading the stock from buy to hold, while eight analysts still maintain a buy rating.
• Recent insider trading saw significant share sales by directors, with total insider sell transactions amounting to approximately $718,381 in the last quarter.

Shares of Rambus, Inc. (NASDAQ:RMBS - Get Free Report) hit a new 52-week high on Thursday after Arete Research upgraded the stock to a strong-buy rating. The stock traded as high as $78.56 and last traded at $77.69, with a volume of 72297 shares. The stock had previously closed at $75.05.

RMBS has been the subject of several other research reports. Wall Street Zen downgraded Rambus from a "buy" rating to a "hold" rating in a research note on Sunday, August 10th. Rosenblatt Securities upped their price target on Rambus from $80.00 to $90.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Susquehanna upped their price target on Rambus from $70.00 to $75.00 and gave the stock a "positive" rating in a research note on Tuesday, July 29th. Arete upgraded Rambus from a "neutral" rating to a "buy" rating and set a $91.00 price target for the company in a research note on Thursday. Finally, Jefferies Financial Group upped their price target on Rambus from $69.00 to $75.00 and gave the stock a "buy" rating in a research note on Tuesday, July 29th. Two investment analysts have rated the stock with a Strong Buy rating and eight have given a Buy rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of "Buy" and an average target price of $79.38.

Insider Activity at Rambus

In related news, Director Necip Sayiner sold 7,500 shares of the stock in a transaction that occurred on Friday, August 8th. The stock was sold at an average price of $73.53, for a total transaction of $551,475.00. Following the completion of the sale, the director owned 38,324 shares in the company, valued at $2,817,963.72. This represents a 16.37% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, Director Emiko Higashi sold 1,075 shares of the firm's stock in a transaction that occurred on Wednesday, August 13th. The stock was sold at an average price of $77.75, for a total value of $83,581.25. Following the completion of the sale, the director owned 62,296 shares of the company's stock, valued at $4,843,514. This represents a 1.70% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 9,686 shares of company stock valued at $718,381. 1.00% of the stock is owned by corporate insiders.

Institutional Trading of Rambus

A number of hedge funds have recently modified their holdings of the company. Orion Porfolio Solutions LLC bought a new stake in shares of Rambus in the 2nd quarter worth approximately $299,000. Thrivent Financial for Lutherans lifted its position in shares of Rambus by 1.2% in the 2nd quarter. Thrivent Financial for Lutherans now owns 25,291 shares of the semiconductor company's stock worth $1,619,000 after acquiring an additional 303 shares during the period. Westwood Holdings Group Inc. lifted its position in shares of Rambus by 41.0% in the 2nd quarter. Westwood Holdings Group Inc. now owns 1,737,062 shares of the semiconductor company's stock worth $111,207,000 after acquiring an additional 504,852 shares during the period. Tower Research Capital LLC TRC lifted its position in shares of Rambus by 132.9% in the 2nd quarter. Tower Research Capital LLC TRC now owns 15,601 shares of the semiconductor company's stock worth $999,000 after acquiring an additional 8,902 shares during the period. Finally, State of Tennessee Department of Treasury lifted its position in shares of Rambus by 5.0% in the 2nd quarter. State of Tennessee Department of Treasury now owns 46,266 shares of the semiconductor company's stock worth $2,962,000 after acquiring an additional 2,188 shares during the period. Institutional investors own 88.54% of the company's stock.

Rambus Stock Performance

The stock has a 50-day simple moving average of $69.13 and a 200 day simple moving average of $59.29. The company has a market cap of $7.94 billion, a P/E ratio of 34.80 and a beta of 1.28.

Rambus Company Profile

Rambus Inc provides semiconductor products in the United States, South Korea, Singapore, and internationally. The company offers DDR memory interface chips, including DDR5 and DDR4 memory interface chips to module manufacturers, OEMs, and hyperscalers; silicon IP, such as interface and security IP solutions that move and protect data in advanced data center, government, and automotive applications; and interface IP solutions for high-speed memory and chip-to-chip digital controller IP.